Jarvis plcInterim Results

26 November 2009

2

Strategic Highlights

Continued focus on Rail, Plant and Freight

Difficult trading conditions in first half due to low rail volumes and consequential volume reduction in plant

Downsizing following Network Rail’s decision to reduce plain line volumes by 30% is now largely complete

Focus on business development has produced increased bidding activity with Network Rail and potential new clients

Improved Health and Safety performance with the Contract Accident Frequency Rate (AFR) now at 0.11, below Network Rail target of 0.175

Accommodation Services – encouraging continued improvement

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Group Financial Highlights

2009 2008

£m £m

Revenue* 114.7 203.1

Operating (loss) / profit* (0.9) 5.9

(Loss) / profit before tax* (3.6) 4.4

Net debt 22.3 34.6

(Loss) / earnings per share (2.7)p 1.4p

* From continuing operations, before exceptional items

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Group Revenue Analysis 2009 2008 2007

£m £m £m

Rail

65.2 152.1* -57% 75.3

Plant 33.8 51.2* -34% 40.8

Accommodation Services 27.0 23.3 +16% 34.4

Eliminations (11.3) (23.5) -52% (14.2)

Total 114.7 203.1 -44% 136.3

*2008 significantly impacted by high volume of West Coast Modernisation work

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Revenue Analysis - Rail

-Track Renewals lower than last year due to Network Rail reducing plain line volumes

-The completion of the West Coast Route Modernisation projects accounted for the lower volume in Enhancement Projects

-Electrical Projects continue to perform well

-Successfully commissioned multi-disciplinary projects at Lugton Loop and Stoke

2009 2008 2007

£m £m £m

Track Renewals 38.3 61.5 39.7

Enhancement Projects 18.5 83.9 28.7

Electrical Projects 16.3 18.1 11.2

Other/eliminations (7.9) (11.4) (4.3)

Total 65.2 152.1 75.3

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Revenue Analysis - Plant

- Reduced revenue as a direct result of the reduction in national rail volumes and completion of West Coast Route Modernisation programme

- OTM secured a one year extension to national contract until April 2010

- Freight performed in line with expectations and secured an extension to its E.ON contract until 2015

2009 2008 2007

£m £m £m

On Track Machines 12.2 19.9 15.0

Small Plant 7.5 14.9 8.5

Specialist Plant 3.6 4.7 6.3

Transport 10.6 11.7 11.0

Total 33.8 51.2 40.8

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Revenue Analysis – Accommodation Services

2009 2008 2007

£m £m £m

Facilities Management 27.0 22.6 30.5

Construction - 0.7 3.9

Total 27.0 23.3 34.4

-Trading ahead of expectations mainly due to settlement of historic claims- Encouraging progress on benchmarking

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Group Segmental Profit Analysis*

2009 £m

2008 £m

2009 %

2008 %

Rail (0.6) 10.2 (0.9) 6.7

Plant 2.6 1.3 7.7 2.5

Accommodation Services 1.4 (0.2) 5.2 (0.9)

Central costs (4.3) (5.4) (3.7) (2.7)

Total (0.9) 5.9 (0.8) 2.9

* From continuing operations, before exceptional items

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Exceptional Items

2009 £m

2008£m

Restructuring costs (2.3) (1.8)

Proceeds from lease termination - 1.7

Total (2.3) (0.1)

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Net Debt

2009 £m

2008 £m

Cash 2.8 4.2

Debt due within one year (2.4) (14.8)

Debt due after one year (22.7) (24.0)

Total (22.3) (34.6)

Debt facility extended to 31 January 2011

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Rail

• Trading continues to be difficult due to low volumes

• Concentration on business development and the ‘work winning process’

• Improved bid volumes for both Network Rail and new potential clients give confidence of volume improvements

• Operational and safety performance improved

• Lugton Loop - major multi disciplinary project – commissioning successful and now nearing completion on schedule

• Stoke – major multi disciplinary project successfully and safely delivered on time

• Rationalisation and cost reductions throughout the business have created a more competitive environment

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Plant (Fastline)

•Plant has experienced low volumes driven from Rail business

•On Track Machines (OTM) performed well.

•Small Plant performed in line with reduced volumes and restructured accordingly

•Specialist Plant showed improved performance through innovative efficient processes

•Operational improvements in Transport enabled provision of higher margins - performed well considering market conditions

•Downsizing resulting from Network Rail’s decision to delay works is complete

13

Freight

•E.ON contract performing well operationally

•E.ON has extended the contract until December 2015

•Volumes remain low due to general economic conditions

•Operational efficiency is improving

•Further business opportunities as market conditions improve

14

Accommodation Services

•Encouraging continued progress

•Excellent progress in resolving historic commercial claims

•Portfolio remains as 24 contracts of which 22 are long term pfi

•Guaranteed long term income streams

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In summary

•Strategy remains to focus on Rail, Plant and Freight.

•A very challenging trading environment with continued low volumes in Rail and Plant

•Focus on safety and operational improvements

•Rationalisation and cost reduction programme largely completed

•Focus on business development and the ‘work winning process’ resulting in increased bidding activity

•Encouraging level of bid opportunities outside Network Rail

•Prospects beyond 2009/10 look more promising